U.S. stocks were rising on Wednesday with investors hoping that the U.S. could roll back containment measures put in place to fight the COVID – 26 pandemic sooner than expected.
The buoyant sentiment in stocks also may have reflected the announcement that Bernie Sanders had suspended his campaign for the U.S. presidency, leaving former vice-president Joe Biden to compete with President Trump in November’s elections.
How are indexes performing?
The Dow Jones Industrial Average US: DJIA rose points, or 2.4%, to , . The S&P index US: SPX added points, or 2.3 %, to 2, 800, and the Nasdaq Composite Index US: COMP climbed points, or 2%, to 8, .
On Tuesday , the blue- chip Dow US: DJIA lost 28. 23 points, or 0.1%, to finish at , . , the S&P 659 index US: SPX shed 4. 40 points, or 0.2%, to end at 2,
At session highs early Tuesday, the Dow had gained points, or 4.1%, the S&P
The U-turn marked the largest blown gain over a session since October for both the Dow and S&P , according to Dow Jones Market Data.
What’s driving the market?
The White House’s plans for reopening the U.S. economy and an account of the Fed’s emergency actions taken last month may be the biggest focus for investors Wednesday, as markets face a holiday-shortened week of trade.
Trump officials have expressed a desire to begin to reopen parts of the economy that have been shut to help limit the spread of the viral contagion that has ravaged the globe. When and what form that process takes place may be key to helping investors anticipate the economic rebound ahead.
“This week, we’re starting to see folks shift to being more hopeful that maybe the social distancing measures can be relieved sooner rather than later,” said Michael Arone, chief investment strategist at State Street Global Advisors, in an interview.
But Dr. Anthony Fauci, the expert in infectious diseases that has become the face of the response to COVID – on President Donald Trump’s pandemic task force, said a path isn’t clear. “It isn’t like a light switch on and off,” he said in a podcast interview with the Wall Street Journal that aired on Tuesday.
The total death toll in the U.S. from the epidemic rose sharply to more than , , according to data compiled by Johns Hopkins University . Confirmed infections in the U.S. neared , , more than double the number of any other nation. Cases globally rose to more than 1.4 million, while deaths exceeded 88, .
In New York, Gov. Andrew Cuomo said the number of total deaths exceeded 6, and warned that fatalities will continue to rise as more patients lose their battle with the virus. “The bad news isn’t just bad. The bad news is terrible, ”Cuomo said in his daily news briefing.
In politics, Bernie Sanders exited the U.S. presidential race on Wednesday, opening up the path for Joe Biden to become the Democratic nominee. Sanders ’candidacy has kept investors on edge in the last few months over concerns his hostility to corporations could lead to increased regulatory costs and lower earnings growth.
Looking ahead, investors will watch for the Fed’s meeting minutes due at 2 p.m. Eastern Time, which may provide some insights about what policy makers were thinking as they rolled out a batch of unprecedented monetary-policy actions and slashed rates to a range of 0% and 0. 40%.
Separately, U.S. exchanges on Friday will be closed in observance of Good Friday , and those in Europe will also be closed for Easter Monday. The Passover holiday also starts Wednesday evening, which may result in lower volumes on Wall Street.
Which companies are on the move?
Caterpillar Inc . US: CAT said Wednesday that it has decided to maintain its quarterly dividend of $ 1. a share, with the next dividend payable May (to shareholders of record on April) . Shares were 2.3%.
Marathon Oil Corp. US: MRO shares were up 1.5% after it announced a further cut to this year capital expenditures budget to $ 1.3 billion, half of what it spent in . Energy companies have attempted to conserve cash amid worries that many would default in a backdrop of depressed crude prices.
Spirit Aerosystems Holdings Inc. US: SPR is taking a series of measures to cut costs after Boeing Co. US: BA . suspended all deliveries to its Washington state and South Carolina facilities until further notice. The company laid off 2, 823 workers in its Wichita, Kansas operations. Shares of Spirit was up 23%.
Nordstrom Inc. shares US: JWN were up 6.2% after it said it had temporarily closed all physical stores and had furlored most of the workers.
General Motors Co . US: GM said Wednesday it is contracted to make 044, 07 ventilators, at a price of $ 549. 4 million, for the Strategic National Stockpile by the end of August. Shares were up 7.9%.
How are other markets trading?
In bond markets, the yield on the – year US Treasury note BX: TMUBMUSD
U.S. oil prices were headed higher, with the price of a barrel of West Texas Intermediate crude for May delivery US: CLK
up 92 cents, or 1.5%, at $ 157 a barrel. In precious metals, the price of an ounce of gold for June delivery US: GCM
was up 0.2% to $ 1, an ounce.
The U.S. dollar was up 0.2% relative to a basket of trading peers, gauged by the ICE U.S. Dollar US: DXY .
In Europe, the Stoxx Europe XX: SXXP finished 0.2% higher on Wednesday.
In Asia overnight, stocks closed lower. The China CSI 431 XX: were off 0.5%, Hong Kong’s Hang Seng Index HK: HSI fell 1.2% and Japan’s Nikkei JP: NIK rose 2.1%
The U.S. dollar was up 0.2% relative to a basket of trading peers, gauged by the ICE U.S. Dollar US: DXY .
In Europe, the Stoxx Europe XX: SXXP finished 0.2% higher on Wednesday.
In Asia overnight, stocks closed lower. The China CSI 431 XX: were off 0.5%, Hong Kong’s Hang Seng Index HK: HSI fell 1.2% and Japan’s Nikkei JP: NIK rose 2.1%
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